[Homestead] Putin response, military and unlikely economic
tvoivozd at infionline.net
Mon Sep 6 14:09:20 EDT 2004
>I may have missed it but please define "Grameen bank".
tvoivozhd---Grameen banks function only in very poor countries. They
are basically NGO's operating on non-government funding. They make very
small loans to individuals but as part of a group, typically ten to
twenty people---all members of the group are collectively responsible
for repayment of individual loans, including repayment of any individual
The loans are for business purposes only---primarily businesses that
operate from the home, though in the agriculture sector they may fund
things like treadle-pumps for irrigating a couple acres of market
garden, grain winnowing machines, hull-removers, small flour mills and
sometimes for value-added, small commercial bakeries.
Production of cooking oil is a very popular and profitable business
where cooking oil has to be imported. It entails little equipment, at
least in beginning stages, primarily a manual oil-extractor press, and
nutritious oil-cake byproduct is fed to animals.
The list of startup enterprises is long and varied. Because of intense
initial scrutiny and continual monitoring by the Grameen Bank, and all
members of collectively financially responsible members of a group,
losses literally do not exist. A basic departure from commercial banks,
is that the loans are meant to benefit borrowers, not stockholders or
thievish bank managers or the private lender extortion experts in the
third world who specialize in high interest rates that traditionally
have kept the poor, poor.
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